Bitcoin Inheritance & Casa’s Solution

Key Takeaways:

Enhanced security: Casa’s multi-key approach significantly enhances security by distributing control of Bitcoin assets across multiple keys held by different parties. This reduces the risk of single points of failure or unauthorised access, making it more resilient against hacking or theft.

Inheritance planning: The solution caters to the need for inheritance planning in Bitcoin and other cryptocurrencies. By allowing users to designate heirs and set up a secure process for passing on their digital assets, Casa addresses a critical concern for long-term holders and investors.

User-friendly interface: Casa’s solution prioritises user experience and ease of use, making it accessible even to those with limited technical expertise. Users can manage their multi-key setup efficiently through intuitive interfaces and straightforward processes, ensuring their Bitcoin holdings are secure and accessible to their chosen beneficiaries when needed.

In Bitcoin (BTC) ownership, self-custody ensures control, security, and privacy. The challenge arises when considering inheritance planning. 

The Importance of Self-Custody in Bitcoin Inheritance

Casa, a leading provider of secure BTC self-custody solutions, offers a pioneering approach through its multi-key system. The firm announced that it is rolling out an inheritance feature to streamline the transfer of assets to benefactors of deceased estates. According to reports, the inheritance of cryptocurrencies can be a complicated process. Co-founder and CEO of Casa, Nick Neuman, suggested that inheritance of cryptocurrencies has been an issue for a long time for crypto-natives who intend to ensure that their digital holdings are passed on accordingly. 

Neuman said, “It’s not overlooked. Many people recognise it is a big problem they want to solve, but they haven’t had good tools to solve it yet, so most people either don’t have a solution or have cobbled together something that they hope will work but don’t feel good about.”

Casa has offered an inheritance feature to its highest membership tier in the United States (US) for the past few years. Neuman highlighted that the new offering will be available to every Casa member, ensuring the process of managing the crypto holdings of deceased individuals.

Neuman added, “Instances where inheritance plans have not been made have been precarious and stressful. When we’ve tried to help recover assets for people who don’t have an inheritance plan and have passed away, it has taken anywhere from 6-12 months to figure everything out. Even then, the chance of actuality recording the assets is low.”

Understanding Casa’s Multi-Key Solution 

Casa’s multi-key solution revolves around a multisig, short for multi-signature, wallet. Unlike traditional single-key wallets, where a single private key controls access, multisig wallets require multiple keys to authorise transactions. In Casa’s setup, a multisig wallet typically consists of three keys:

  1. User Key (Key 1): This key is held by the Bitcoin owner, giving them primary control over their funds. It is securely stored by the user, ensuring direct access to their Bitcoin holdings.
  2. Casa Key (Key 2): Casa holds this key, serving as a backup in case the user loses access to their funds or faces any emergencies. Casa’s infrastructure is designed to safeguard this key with robust security measures, including geographically distributed hardware security modules (HSMs) and encryption protocols.
  3. Inheritance Key (Key 3): The third, or “inheritance key”, is explicitly designed for inheritance planning. This key is securely stored in a location the user chooses, such as a safe deposit box or with a trusted attorney. It remains inaccessible during the user’s lifetime but becomes activated in the event of incapacitation or passing.

Casa’s multi-key solution effectively addresses the challenges associated with self-custody BTC inheritance by providing redundancy, security, and accessibility. In its proprietary app, Casa’s users are offered hinges designating the recipient to a specific vault, where the recipient creates a free Casa account or scans a QR code provided by the vault owner containing an encrypted version of the owner’s mobile key.

According to reports, the key can only be imported by a specified account, and the recipient can’t use it to view the vault balance. Neuman noted, “If the vault owner passes away, the recipient can request access to the vault in their Casa app. This starts a six-month timer and sends a ton of notifications every month to the owner.” This move allows the owner to reject the request in their app if they are still alive. However, if the timer runs out, the recipient can use the shared mobile key and request a signature from the Casa Recovery Key for the shared vault. 

Seamless Bitcoin Inheritance 

The key advantage of Casa’s multi-key solution lies in its ability to facilitate seamless BTC inheritance while maintaining security and privacy. The process:

  1. Initial setup: Upon signing up with Casa, users undergo a straightforward setup process to create their multisig wallet. Casa generates the necessary keys, including the user key and the Casa key, while the user provides the information required to set up the inheritance key.
  2. Regular check-ins: Casa incorporates regular check-ins with users to ensure that they maintain control over their funds and to verify the accessibility of their keys. This proactive approach helps prevent potential issues and ensures that the inheritance key remains securely stored until needed.
  3. Activation of the inheritance key: In the unfortunate event of the user’s incapacitation or passing, Casa follows a predefined protocol to activate the inheritance key. This typically involves verifying the user’s status through trusted channels, such as legal documentation or designated contacts.
  4. Transfer of control: Once the inheritance key is activated, Casa collaborates with the designated inheritor(s) to facilitate the transfer of control over the Bitcoin holdings. This process adheres to the user’s predetermined instructions, ensuring a seamless transition of assets while maintaining security and privacy.

By leveraging Casa’s multi-key solution, BTC owners can rest assured that their assets are protected and accessible to their loved ones when needed. The recipient will be given 2 out of 3 signatures required to access the asset and five-key vault, where Casa shares one hardware key with the recipient.

Casa’s multi-key solution represents a pioneering approach to self-custody Bitcoin inheritance, providing users with peace of mind knowing that their assets are safeguarded and accessible to their designated inheritor(s) in the event of unforeseen circumstances. By combining the security of multisig technology with proactive measures and streamlined processes, there is a new standard for Bitcoin ownership and inheritance planning. 

Fhumulani Lukoto Cryptocurrency Journalist

Fhumulani Lukoto holds a Bachelors Degree in Journalism enabling her to become the writer she is today. Her passion for cryptocurrency and bitcoin started in 2021 when she began producing content in the space. A naturally inquisitive person, she dove head first into all things crypto to gain the huge wealth of knowledge she has today. Based out of Gauteng, South Africa, Fhumulani is a core member of the content team at Coin Insider.

View all posts by Fhumulani Lukoto >

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